All Forum Posts by: Patrick L.

1 per adult, keys are cheap.  We always change locks between tenants anyway......even if you get the same number of keys back how do you know the tenant didn't make any copies?   It's poor security practice to leave the locks keyed the same when the units turn over.   We just rotate those locks to another unit.   

I had one that I bought back at the bottom of the market with the plans to rent for a few years and resell.   Never had an issue with insurance since pools are so common in FL.   The first tenant I made the mistake of letting the tenant take care of the pool and I got it back green and full of frogs.   For the next few years I paid for a weekly pool service and built the cost into the rent and never had another issue.   The house appreciated well and I sold it last year for double what I paid for it.....the pool was a great selling point.  

It's easy for a seller to find someone to sign a lease for above market rent.  Find a poor/questionable tenant with limit options and they'll sell the lease because they're getting shut out of the reasonably priced properties by better applicants.  Does it mean they'll pay every month?  No.   Does it mean they'll stay?  No.   Does it mean you'll be able to get the same rent from the next tenant?  No.  

Use market rent for your analysis.

I keep a list of local charities and organizations that provide rent and utility assistance.  When someone gives me a story about why they can't pay the rent I send them that list and they can do the leg work and try to chase down some assistance.   There are a lot of churches, charities and government programs to help keep people from being evicted, especially if it's someone with a short term issue.  

I'd say right around the time they get the property back.  They probably haven't collected any rent in 2 months and they go to the property and find out they need to spend a couple thousand to clean it up and get it rent ready and might be a month away from collecting rent again.   Their dreams of gross expected rent minus taxes and insurance = profit are crushed.   If someone comes in and makes a cash offer it might be tempting rather than having to continue to put money back into it and face the uncertainty of a new tenant search and another unknown tenant.  

I haven't but I know the risks and consider myself a professional landlord.   If you're looking for motivated sellers evictions are a great starting point, especially if the property is returned to the landlord in less than perfect condition. Many people get very frustrated easily by tenant drama, especially those with very few rentals.

Also keep in mind that your monthly numbers don't even factor in vacancy loss and any repairs or cap ex for the property.   Your true monthly loss will actually be much higher over time.  

I find that most of the clogged drain, no AC/heat, and water leak calls occur around Friday at 5-6pm.  The tenants don't have my number so it's a problem for my maintenance guy to sort out, he uses his discretion whether those items can wait or not.   

 Did you buy these through a broker?   Did you do BPO's this time?   

Sounds like your first experience didn't scare you off. I've been looking for more notes lately as the market to buy rentals has gotten tighter. I bought one NPN last year to give it a shot. I bought something similarly priced to yours at $16k but it was in my local market so I knew the area well and did my own inspection on the asset. I ended up spending another $5k on attorney fees, servicing fees and property preservation and I let it go 3rd party at the foreclosure auction for $55k (all net, no expenses for a foreclosure sale). Pretty good return for me but I knew worst case I could just hold the property as a rental if I had to, when I bought it I thought the exit would be around $35k but the market really picked up during the time I had the note (plus the 3rd party bidder overpaid at the auction IMO)

 Glad you got this resolved.   I was going to chime in and let you know that in the City of St Petersburg all windows must open and have screens to meet code.  Sealing them shut is a major fire hazard and would be incredibly reckless to do.   You can install regular windows, you do not need to buy fancy windows.  I like the double pane ones that Lowes sells, pretty solid value at under $150 per window.   Many contractors want to sell you fancy windows to make a larger margin but to meet code you just need to put up some type of shutters, for my rentals I use the wall anchors and cut and labeled 1/2" plywood option.   

As for your old windows anyone that says they don't make parts is lying to you.   We've found parts to fix every type of window imaginable but if you entire house is full of questionable windows you will be better off in the long run upgrading to new windows as you will constantly have problems with them not sealing, not opening, etc.    A decent double pane window will be your best option long term.